#GENIUSActPass 🏛 What does the GENIUS Act do for the crypto market

1. Establishes the first federal regulatory framework for stablecoins, including reserve requirements (1:1 dollar), monthly reporting, and measures to combat money laundering and terrorism financing  .

2. Introduces priority rights for stablecoin holders in bankruptcy, although some experts believe this could lead to financial bailouts at the expense of taxpayers.

3. Prohibits members of Congress and their families from issuing stablecoins, but leaves a loophole for the president and his family, which has been a subject of criticism.

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📈 Reaction and Consequences

• Positive:

• Trust in stablecoins is strengthened, creating a foundation for their use by major banks (Bank of America, Morgan Stanley, etc.) and businesses (Walmart, Amazon) .

• Market players' opinions (e.g., Circle, Coinbase, Galaxy Digital) lean towards positive—considering the GENIUS Act a 'game-changing' or 'breakthrough' step .

• Institutions like ARK Invest note an increase in stablecoin stocks: for example, Ark Invest reduced their position in Circle, after which the price rose .